Accounting Multiple Choice Question – 1 October 2024

Alex has a sole trading business with net assets of £286,400 on 13 January 2024.

The business had net assets of £266,800 on 31 January 2023.

During the year Alex did the following:

(1) took goods for his own use which cost £10,000 and had a market value of £14,000

(2) introduced capital of £50,000

(3) withdrew £30,000 as salary.

The profit for the year was therefore?

Select ONE answer:

1. £9,600
2. £30,400
3. £70,400
4. £109,600

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Opening net assets £266,800 + Capital £50,000 – Drawings £40,000 + Profit (Balancing Figure) £9,600 = Closing Net Assets £286,400
2. Not correct
3. Not correct
4. Not correct

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